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What Were The Advantages And Disadvantages Of Government Subsidies For The Railroads?

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The railroads would often sell the land and make money off the land that was paid for by citizens (their tax money goes to the government, which gave the land grants). They also withheld land from other users until they figured out where their tracks would lay. A benefit was that railroad companies were able to expand further west. Granting land was a "cheap" way to subsidize a much-desired transportation system, because it avoided new taxes for direct cash grants.

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